Multi-Unit Franchisee Magazine Issue IV, 2013 | Page 81

are suggesting is to not let historical data completely control your decision-making and lose sight of your ability to stand back and assess the situation. Furthermore, invest the time up front to define the right strategic characteristics of a transaction for your organization. Not all transactions represent the right fit for all companies. Know what is important to you. Many buyers we come across don’t really even know what they are looking for in a transaction. So how can they know if the right situation is staring them in the face when they have no idea what they should be looking for? We are reminded of the old adage: “If you don’t know where you are going, any road will get you there.” Finally, if you come across an opportunity that seems to meet your criteria, invest the time up front to fully understand the transaction before presenting an offer. Too often, buyers want to chase and prematurely lock up a deal before If you come across an opportunity that seems to meet your criteria, invest the time up front to fully understand the transaction before presenting an offer. they truly understand it, only to back off or re-trade on it once they dig in and assess the transaction. Attempting to understand the details of the business only after a deal has been agreed to is often a recipe for disaster—for both parties. In conclusion, establish criteria for what you are seeking in a deal. That way you will recognize the right deal when it becomes available. Do your analysis, but focus on the big picture. Ask yourself, “Given my skills, experience, and organization, what specific avenues to create value does this opportunity present to me?” And then, don’t let distractions derail the process: have the tenacity to see it through to a successful outcome. Dean Zuccarello, CEO and founder of The Cypress Group, has more than 30 years of financial and transactional experience in mergers, acquisitions, divestitures, strategic planning, and financing in the restaurant industry. The Cypress Group is a privately owned investment bank and advisory services firm focused exclusively on the multi-unit and franchise business for more than 22 years. Contact him at 303-680-4141 or [email protected]. Multi-Unit Franchisee Issue I V, 2013  79